On Thursday, SBI Cards and Payment Services Ltd (SBI Card) reported 106 per cent rise in net profit to Rs 627 crore in the first quarter ended June 30, 2022. The SBI-promoted card issuance company had reported a net profit of Rs 305 crore in the April-June quarter of the previous fiscal. The company’s revenue from operations increased 31 per cent to Rs 3,100 crore in the quarter under review as against Rs 2,362 crore in the same quarter last fiscal.
Further, its total income stood at Rs 3,263 crore for Q1FY23 as against Rs 2,451 crore in same quarter last fiscal.
Segment-wise, the interest income increased to Rs 1,387 crore from Rs 1,153 crore in the same quarter a year ago, while income from fees and services rose to Rs 1,538 crore from Rs 1,099 crore in the first quarter of 2020-21. Other income nearly doubled to Rs 163 crore from Rs 89 crore in the year-ago period. On asset quality front, the company’s gross non-performing assets fell to 2.24 per cent of gross advances as on June 30, 2021 as against 3.91 per cent as on June 30, 2021.
Card spends during the June quarter increased to Rs 59,671 crore as against Rs 33,260 crore in the same period of 2021-22. Receivables grew by 36 per cent to Rs 33,215 crore from Rs 24,438 crore. Card-in-force grew by 19 per cent to 1.43 crore as of Q1FY23 compared with 1.20 crore as of Q1FY22.
As per the capital adequacy norms issued by the RBI, the company’s capital to risk ratio consisting of tier I and tier II capital should not be less than 15 per cent of its aggregate risk weighted assets on – balance sheet and of risk adjusted value of off-balance sheet items. As of June 30, 2022, Company’s CRAR was 24.7 per cent compared to 26.1 per cent as of June 30, 2021, it said.